Case Number: ITA 526/DEL/2019
Appellant: DCIT (International Taxation), Circle-3(1)(1), New Delhi
Respondent: Russel Reynolds Associates Inc., Gurgaon
Assessment Year: 2014-15
Result: 2014-15
Case Filed on: January 24, 2019
Order Type: Final Tribunal Order
Date of Order: August 23, 2019
Pronounced on: August 23, 2019
The case ITA 526/DEL/2019 involves the Deputy Commissioner of Income Tax (International Taxation), Circle-3(1)(1), New Delhi, as the appellant, and Russel Reynolds Associates Inc., Gurgaon, as the respondent. This case pertains to the assessment year 2014-15 and addresses the implications of the Central Board of Direct Taxes (CBDT) Circular No. 17/2019. The appeal was filed on January 24, 2019, and the final order was pronounced on August 23, 2019.
Russel Reynolds Associates Inc., a prominent entity, was scrutinized for its international transactions during the assessment year 2014-15. The DCIT (International Taxation) raised concerns about the applicability of certain provisions under the Income Tax Act, 1961, leading to the filing of this appeal. The primary focus of the appeal was to seek clarity on the implications of the CBDT Circular No. 17/2019, dated August 8, 2019.
The CBDT Circular No. 17/2019 amended para 3 of Circular No. 3/2018, modifying the monetary limits for filing appeals by the Department before the Tribunal. The enhanced monetary limit specified in the Circular was set at INR 50 lakhs. This change aimed to reduce the number of appeals filed by the Department, thereby easing the burden on the judiciary and promoting efficient resolution of disputes.
During the proceedings, the Tribunal noted that the tax effect in dispute in the captioned appeals was below the enhanced monetary limit of INR 50 lakhs as specified in the CBDT Circular dated August 8, 2019. The learned Departmental Representative (DR) for the Revenue did not provide any material to show that the appeals were protected by any of the exceptions provided in para 10 of the CBDT Circular dated July 11, 2018, and its amendment dated August 20, 2018.
Without delving into the merits of the issues raised in the appeal, the Tribunal deemed the appeals to be withdrawn/not pressed, as their filing was not in consonance with the CBDT Circular dated August 8, 2019. The Tribunal emphasized that if, at a later date, the Revenue finds that the tax effect in dispute exceeds the prescribed limit or is protected by any exceptions, it could approach the Tribunal for recall of the order and reinstitution of the appeal for adjudication on merits.
The case ITA 526/DEL/2019 highlights the impact of administrative circulars on the judicial process. The dismissal of the appeal based on the revised monetary limits set by the CBDT Circular No. 17/2019 underscores the importance of adhering to administrative guidelines for efficient dispute resolution. This case serves as a precedent for future cases where the applicability of CBDT circulars is in question, ensuring that the judiciary is not overburdened with appeals of low monetary value.
Order pronounced in the open Court on August 23, 2019, by the members of the Tribunal:
[G.S. PANNU]
VICE PRESIDENT
[JUSTICE P.P. BHATT]
PRESIDENT
Copy forwarded to:
//By Order//
Assistant Registrar, ITAT, Delhi Benches, New Delhi
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